R1S lease details in coming weeks

[jjswan33]

Can you do that? Have you worked out the economics on it with Rivian? Tell me more.....!

I can’t tell you about the specifics on a Rivian but in my case I just bought a second car (Ioniq 5) and I got it on a lease. MSRP was around $60k after negotiation, tax credit, down payment and other fees my capitalized cost comes to like $51k. As soon as I pay that the car is mine, no more lease payments. The number goes down by ~$400 every payment I make.

There will be some lease end fees as well I will have to pay I believe, like $400 or something.

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[Riviot]

There will be some lease end fees as well I will have to pay I believe, like $400 or something.

The way those were described to us with the Rav4 Prime, lease end fee only applies if you don't "trade in" or buy it. I asked about buying outright early, they said it don't apply.


Regarding R1S and even R1T lease, I wonder if they'll ever open this up to Pre-March 1 preorders (?️ Never Forget ?️). An extra $3750 would be tempt me into trading in ? for a newer PDM.

 

[Supratachophobia]

The way those were described to us with the Rav4 Prime, lease end fee only applies if you don't "trade in" or buy it. I asked about buying outright early, they said it don't apply.


Regarding R1S and even R1T lease, I wonder if they'll ever open this up to Pre-March 1 preorders (?️ Never Forget ?️). An extra $3750 would be tempt me into trading in ? for a newer PDM.

That's a good point. If you buy right now from a lease, is the tax credit 3750 or 7500?

 

[R1SFamilyGuy]

Sounds like a big loophole, the whole higher tax credit thing, if it’s true!

 

[TexasBob]

That's a good point. If you buy right now from a lease, is the tax credit 3750 or 7500?

From FAQ:

Do I get the federal EV lease credit when leasing?
Any customers leasing a Rivian vehicle will see a $7,500 capital cost reduction applied to their vehicle subtotal during the digital purchasing process.

 

[Riviot]

That's a good point. If you buy right now from a lease, is the tax credit 3750 or 7500?

It's absolutely true, covered elsewhere in the forum by other members. @jjswan33 did it on his new ride, and we just did it on our Rav4 Prime.

 

[TexasBob]

That's a good point. If you buy right now from a lease, is the tax credit 3750 or 7500?

I contacted Rivian and they sent me to Chase so I contacted Chase and they said:
"You can buy the vehicle at any time. The cost is the residual value they quoted you at the time of the lease plus all remaining payments on the lease and any taxes and fees due for the purchase."
That would be a very expensive way to get $7,500.

 

[jjswan33]

I contacted Rivian and they sent me to Chase so I contacted Chase and they said:
"You can buy the vehicle at any time. The cost is the residual value they quoted you at the time of the lease plus all remaining payments on the lease and any taxes and fees due for the purchase."
That would be a very expensive way to get $7,500.

Whoever told you that is wrong or they/you misunderstood.

Each lease payment includes a ’rent charge’ and a ‘depreciation charge’, these two charges are the same for the life of a lease. They also include a capitalized cost which is what hasn’t been paid. It is reduced each month by the depreciation charge in your payment.

I assume what they meant is that you have to pay the residual plus the remaining amount of the total of ‘depreciation charges’ multiplied by the number of payments remaining. This will total your capitalized cost.

 

[TexasBob]

Whoever told you that is wrong or they/you misunderstood.

Each lease payment includes a ’rent charge’ and a ‘depreciation charge’, these two charges are the same for the life of a lease. They also include a capitalized cost which is what hasn’t been paid. It is reduced each month by the depreciation charge in your payment.

I assume what they meant is that you have to pay the residual plus the remaining amount of the total of ‘depreciation charges’ multiplied by the number of payments remaining. This will total your capitalized cost.

I never underestimate the ability of customer service employees to give out incorrect information! This may be one of those cases. (I can assure you I did not misunderstand as I repeated the answer back to her twice using different phrasing to be sure.)

If someone with an actual chase Lease document is able to pull up the language or contact chase and ask the question, i suppose we will get a definitive answer. (Obviously the objective here is for people who are ineligible for the credit to secure the credit via a lease and then do an early pay-off to avoid the financing costs of a lease. )

 

[jjswan33]

I never underestimate the ability of customer service employees to give out incorrect information! This may be one of those cases. (I can assure you I did not misunderstand as I repeated the answer back to her twice using different phrasing to be sure.)

If someone with an actual chase Lease document is able to pull up the language or contact chase and ask the question, i suppose we will get a definitive answer. (Obviously the objective here is for people who are ineligible for the credit to secure the credit via a lease and then do an early pay-off to avoid the financing costs of a lease. )

I haven’t leased from Chase but I can confirm that my lease from Hyundai Motor Finance works the way I described.

 

[Kamster]

I have never leased a car, but if I could get an R1S today on a lease, I would jump on it. I get the tax credit in the form of a price discount. I get to drive a gen 1 SUV for the length of the lease and walk away if the numbers don't work and turn around and purchase a gen 2 Rivian, with improved technology and possibly a better price point. Only down side, I will possibly have "car payments" longer

 

[Supratachophobia]

I have never leased a car, but if I could get an R1S today on a lease, I would jump on it. I get the tax credit in the form of a price discount. I get to drive a gen 1 SUV for the length of the lease and walk away if the numbers don't work and turn around and purchase a gen 2 Rivian, with improved technology and possibly a better price point. Only down side, I will possibly have "car payments" longer

Yes, is a win either way if you aren't worried about the mileage. I put 25k on a year so only half the lease equation works for me.

 

[Kamster]

Yes, is a win either way if you aren't worried about the mileage. I put 25k on a year so only half the lease equation works for me.

Typically I average 7-10k a year, but then i do have an 18YO car so might have to be careful with an actual new car

 

[Electrified Outdoors]

I expect this will come soon. Rivian has some demand triggers to pull. Leasing for R1S and then standard battery pack T and S is another.

Rivian really needs to bring back the lower cost explore trim. They have to be able to maintain some demand until they bring R2 production online. They need to get more 70k price range buyers.

 

[Supratachophobia]

I expect this will come soon. Rivian has some demand triggers to pull. Leasing for R1S and then standard battery pack T and S is another.

Rivian really needs to bring back the lower cost explore trim. They have to be able to maintain some demand until they bring R2 production online. They need to get more 70k price range buyers.

Doing a lease would 100% get me off the fence and behind the wheel of an R1S. Not sure how many others are in that boat, but certainly a demand lever pull. And because of the 7500 lease loophole, a lever that's going to keep forever drawing in buyers who's hang up is the tax credit. Which I've always found comical (stupid) for people making over 300k MFJ who say that's their EV purchase hill to die on.

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